Do I need third party insurance before hiring a contractor for work on my ST unit?
Hi, I am the owner of a property in a sectional title unit. I am needing to do some minor repairs and renovations to the unit , nothing structural, mostly painting touch ups, the invoice cost is a little over R18,000.
I have been instructed that before any work can commence I first need to take out Third Party Liability and a Damage to Surrounding Property Liability Insurance Cover of R10m.
Should this not already by covered by the complex’s insurance? I am still waiting on quotes but I have a feeling that the premium on an insurance of this amount will be more than the cost of the work to be done. Is there any way around this?
Please advise – Deon
Hi Deon, the contractor should have insurance protecting against any possible damage.
Normally the contractor should have All Contractors’ Risk Insurance as part of being a builder. This has to do with health and safety, as well as any possible damage caused by third-parties like contractors.
For larger contracts, such as building renovation or alteration for example, the body corporate has to inform their insurance company of any change in risk.
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Answered by Michael Bauer, general manager of property management company IHFM